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Expomanagement presentation by Charlene Li at IESE in Barcelona, Spain, November 7, 2011
Citation preview
The Power Of Groundbreaking Social Technologies
1
Charlene LiAltimeter GroupTwitter: @charleneliEmail: [email protected]
© 2011 Altimeter Group
2
© 2011 Altimeter Group
OUT of CONTROL?
© 2011 Altimeter Group
© 2011 Altimeter Group© 2011 Altimeter Group
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© 2011 Altimeter Group© 2011 Altimeter Group
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© 2011 Altimeter Group
It’s about RELATIONSHIPS
© 2011 Altimeter Group
© 2011 Altimeter Group
Strategy Lead Prepare
Agenda7
© 2011 Altimeter Group
Strategy Lead Prepare
Agenda8
© 2011 Altimeter Group
Strategy Process Stages
Discovery IdeationFormulatio
n & Alignment
Planning Roadmap
9
© 2011 Altimeter Group
Strategy Process Stages
Discovery IdeationFormulatio
n & Alignment
Planning Roadmap
Set context • Determine key objectives• Level of strategy (corporate, biz unit, brand)
10
© 2011 Altimeter Group
Align social with key strategic goals11
Examine your 2011 goals
Pick ones where social will have an impact
© 2011 Altimeter Group
Corporate
Risk managemen
t
Leadership development
& culture
Value metrics
Business unit
Consistency across brands
Social strategist &
COE
ROI metrics
BrandChannel focus
Community manager & education
Engagement metrics
Objectives differ by level12
© 2011 Altimeter Group
Use appropriate metrics at each level13
Corporate
LOB/Geo Stakeholde
rsSocial
Strategist/Community Manager
Business metrics: revenue, CSAT, reputation.
Social media analytics: Insights, share of voice, resonance, WOM.
Engagement metrics: fans, followers, clicks.
© 2011 Altimeter Group
Strategy Process Stages - Ideation
Discovery IdeationFormulatio
n & Alignment
Planning Roadmap
Collect and prioritize strategic options• Metrics-based value assessment• Prioritize against objectives
14
© 2011 Altimeter Group
Impact• How does it
support an objective?
• What metrics matter?
Readiness• Are there
people who can do this?
• Is there budget?
Risks• What are the
risks if we do this?
• What if we don’t?
Priority• Does this
initiative enable other work?
Evaluate each initiative15
© 2011 Altimeter Group
Define Your Strategy With Objectives16
Learn
Dialog
Support
Innovate
© 2011 Altimeter Group
How does social media matter to B2B?
Chief stakeholders may not be using social media.• But lieutenants will be.
Social media is impacting how B2B decisions are being made.• Background research• Expertise• Search results impact
© 2011 Altimeter Group
People in B2B use social media for work
Use Twitter to find or request business information
Ask questions on Q&A sites
Participate in online business communities or forums
Visit company blogs
Visit company profiles on social media sites
Read user ratings/reviews for business products/services
29%
49%
51%
55%
62%
62%
18
Source: 2009 Business.com Business Social Media Benchmarking Study (n=2,393)
© 2011 Altimeter Group
Strategy• Learn
• Dialog
• Support
• Innovate
Lead Prepare
Agenda19
© 2011 Altimeter Group
Track brand mentions with basic tools
20
What would happen if every employee could
learn from customers?
© 2011 Altimeter Group
Integrate monitoring with workflow21
From Radian 6, to be acquired by Salesforce.com
Other providers
AlterianBrandsEyeBuzzmetrics CymfonySysmosVisible Tech.
© 2011 Altimeter Group
No monitoring in place
Tracks brand mentions using basic tools (Google, Twitter)
Centralized monitoring but not actionable in business unites
Deep monitoring to prep & support campaigns
Monitoring & analytics support integrated into everyday workflow
Go beyond basic monitoring to analytics
22
Make course corrections nearly real-time.
Use predictive analytics to anticipate demand.
© 2011 Altimeter Group
Your customers want to be “known”23
I walk into my local grocery store
© 2011 Altimeter Group
The store knows it’s me24
• Social check-ins (Four Square, Yelp, Facebook Places)• Near Field Communications
© 2011 Altimeter Group
I get coupons to use right away25
© 2011 Altimeter Group
And connect my phone to in-store GPS shopping cart
26
© 2011 Altimeter Group
Community insight platforms27
» Communispace and Passenger offer
online focus groups solutions.
© 2011 Altimeter Group
Private communities give better control • Get input from specific communities• Can target specific hard-to-reach communities
But they are hard to create – and maintain• Who needs to be included? Excluded?• Provide non-monetary incentives/rewards for
participating in the community• Deserves and requires dedicated community
manager• Integrate into your company’s support and
innovation process
Pros and cons of private communities
28
© 2011 Altimeter Group
Go beyond traditional data to understand your customers
29
Demographic
Geographic
Psychographic
Behavioral
Socialgraphic
© 2011 Altimeter Group
1. Where are your customers online?
2. What social information or people do your customers rely on?
3. What is your customers’ social influence? Who trusts them?
4. What are your customers’ social behaviors online?
5. How do your customers use social technologies in the context of your products.
Socialgraphics asks key questions30
© 2011 Altimeter Group
Engagement Pyramid31
Curating
Producing
Commenting
Sharing
Watching
© 2011 Altimeter Group
Engagement Pyramid - Watching32
Curating
Producing
Commenting
Sharing
Watching
Watch videosRead blog posts
Listen to podcasts
Read tweetsRead discussion
forum posts
© 2011 Altimeter Group
Engagement Pyramid - Sharing33
Curating
Producing
Commenting
Sharing
Watching
Share a linkShare photosShare videosWrite a status
updateRetweet
© 2011 Altimeter Group
Engagement Pyramid - Commenting34
Curating
Producing
Commenting
Sharing
Watching
Comment on a blog
Write a reviewRate a productParticipate in a
discussion forum@Reply on
© 2011 Altimeter Group
Engagement Pyramid - Producing35
Curating
Producing
Commenting
Sharing
Watching
Write a blogCreate videos or
podcastsTweet for an
audience
© 2011 Altimeter Group
Engagement Pyramid - Curating36
Curating
Producing
Commenting
Sharing
Watching
Moderate a wiki or discussion
forumCurate a
Facebook fan page
© 2011 Altimeter Group
Spain Italy UKUnited States
Curating <1% <1% <1% <1%
Producing 30.3% 38.7% 52.7% 26.1%
Commenting 45.1% 37.4% 54.0% 34.4%
Sharing 58.6% 63.6% 79.3% 63.0%
Watching 82.2% 77.3% 89.3% 78.1%
Engagement Pyramid Data37
Source: Global Wave Index Wave 2, Trendstream.net, January 2010
© 2011 Altimeter Group
38
Conduct research to identify the social behaviors of your
target customer
Also identify:
• Where are they online: Surveys or brand monitoring
• Who do they trust: Surveys
• Who do they influence: Survey or brand monitoring
• How they use these tools in context of your products: Most often surveys.
When you first understand your customers, your marketing efforts will naturally unfold.
Putting socialgraphics to work
© 2011 Altimeter Group
Listen and learn from your customers.
Start with basic monitoring tools, but quickly evolve them.
Invest in analytics that matter. Use metrics that are relevant to your business.
Understand the socialgraphics of your customers.
Summary - Learn39
© 2011 Altimeter Group
Strategy• Learn
• Dialog
• Support
• Innovate
Lead Prepare
Agenda40
© 2011 Altimeter Group
Conversations, not messages
Human, not corporate
Continuous, not episodic
The New Normal41
© 2011 Altimeter Group
Boeing uses blogs to engage42
© 2011 Altimeter Group
Kohl’s engages directly with customers
43
© 2011 Altimeter Group
Vodafone UK uses Twitter to proactively communicate with customers
44
Vodafone UK humanizes their Twitter account by
including pictures of their support team and
identifying different respondents by an “^”
and the team member’s initials.
© 2011 Altimeter Group
Spain Tourism used multiple channels to encourage dialog/sharing
45
© 2011 Altimeter Group
B2B can also use Facebook46
• Develop relationships with job candidates, prospects, and current employees
• Insert your content into newsfeed of fans
• B2B is really people to people
© 2011 Altimeter Group
47
Also encourage dialog inside the company
© 2011 Altimeter Group
Premier Farnell supports engineers with community, and employees with “OurTube”
48
© 2011 Altimeter Group
Give out Flip cameras/smartphones• Set up an internal “OurTube”• Transcribe conversations into emails and posts
Ask people for best practices, reactions, advice, opinion in areas of passion.
Recognize key contributors.
Getting people to share within your company
49
© 2011 Altimeter Group
Tivo joined an existing community50
© 2011 Altimeter Group
Advocacy – A five-phase approach51
Phase 1: Internal
Readiness
Phase 2: Identify
Advocates
Phase 3: Build
Relationships
Phase 4: Put
Advocates First
Phase 5: Foster Growth
© 2011 Altimeter Group
Tesco engages influencer blogs52
Blog post series highlights & drives traffic to blogs by
Influencers. Twitter feed encouages engagement too.
© 2011 Altimeter Group
Have an authentic conversation with your customers that they want to have.
Engage across and through social communities
Engage off of your Web site. Recruit an army of customer advocates. Respond to your prospects and customers
in real time.
Summary - Dialog53
© 2011 Altimeter Group
It’s about RELATIONSHIPS
© 2011 Altimeter Group
© 2011 Altimeter Group
Strategy• Learn
• Dialog
• Support
• Innovate
Lead Prepare
Agenda55
© 2011 Altimeter Group
Vodafone Italy and Spain take disparate, effective approaches to online support
56
© 2011 Altimeter Group
Ritz-Carlton managers monitor Twitter for real-time service
57
Property manager helped
unhappy honeymooners
© 2011 Altimeter Group
DellOutlet supports sales with Twitter
58
© 2011 Altimeter Group
iRobot ties discussion boards into customers support
59
iRobot escalates unanswered
questions into support centers
© 2011 Altimeter Group
Salesforce.com Service Cloud ties social channels back to customer data
60
© 2011 Altimeter Group
Solarwinds’ community is strategic61
© 2011 Altimeter Group
Real-time isn’t fast enough. Integrate “social” support into your
support infrastructure. Scaling support to meet the
groundswell will require that you create your own groundswell.
Summary - Support62
© 2011 Altimeter Group
Strategy• Learn
• Dialog
• Support
• Innovate
Lead Prepare
Agenda63
© 2011 Altimeter Group
Participate in crowdsourcing to understand how it works.
Create a culture of sharing and collaboration within the company.
Encourage “intrapreneurship”.• 85% of innovations involve optimizing one
parameter.• Use social media to collect and prioritize ideas.
Reduce “power distance” with open leadership and management.
How to encourage innovation64
© 2011 Altimeter Group
Italian Telecom launches small business social network
65
Wind Italy displays support, innovation towards the small
business community
© 2011 Altimeter Group
Danish bank asks for help to improve mobile banking on Facebook
66
© 2011 Altimeter Group
Fiat Mio, the world’s first crowdsourced car
67
© 2011 Altimeter Group
Starbucks involves 50 people around the organization in innovation
Over 100 ideas have been
implemented
68
© 2011 Altimeter Group
P&G uses reviews to improve products
69
© 2011 Altimeter Group
P&G goes outside for innovation
P&G made outside-in
innovation a priority
70
© 2011 Altimeter Group
Innovating can come from any customer or employee interaction.
Dedicated innovation communities require significant commitment and nurturing.
Extend your firewall to bring customers into your organization.
Summary - Innovating71
© 2011 Altimeter Group
Strategy Process Stages
Discovery IdeationFormulatio
n & Alignment
Planning Roadmap
Strategy statement• What you will do• What you won’t
doScenarios development• Implementation roadblocks• Company and leadership implications• Risk identification• Build resilience
72
© 2011 Altimeter Group
What’s the Next Big Thing?73
© 2011 Altimeter Group
iPhone Debut
Jan 2007
PlatformMay 2007
ConnectJuly
2008
iPhone App Store
July 2008
Nexus One Android DebutJanuary 2010
iPad DebutApril 2010
TimelineSept 2011
How Time Flies74
Our notions of sharing & privacy have changed as
well
© 2011 Altimeter Group
75
Identify and prioritizing disruptions that matter
User Experience•Is it easy for people to use?
•Does it enable people to connect in new ways?
Business Model•Does it tap new revenue streams?
•Is it done at a lower cost?
Ecosystem Value•Does it change the flow of value?
•Does it shift power from one player to another?
© 2011 Altimeter Group
“How personal relationships, individual opinions, powerful storytelling and social capital are helping brands…become more believable.”
1) Likenomics (credit to Rohit Bhargava)
76
Understand the supply, demand, and thus, value of Likes as social currency
See http://bit.ly/rohit-likenomics for Rohit’s take
© 2011 Altimeter Group
Likenomics evaluation77
User experience impact - moderate• People with high social currency will enjoy
benefits, richer experiences, receive psychic income.
• People with low social currency will find ways to get it.
Business model impact – moderate• New economics create opportunity for people
who understand Likenomics to leverage gas.• The cost of accessing social currency will
increase, and raise barriers to entry. Ecosystem value impact – none
© 2011 Altimeter Group
78
2) Social Search – Beyond Friends to Interests
Social sharing rises as a search ranking signal, esp in the enterprise
Create a social content hub to gain traction
Use microformats to highlight granularity (e.g. hProduct & hReview)
© 2011 Altimeter Group
Social Search evaluation79
User experience impact - Moderate• Search becomes more useful, relevant to people.
Business model impact – Moderate• SEO takes on a different dimension, rewards
companies with social currency, personalized experiences.
Ecosystem value impact – Moderate• New power brokers are social data/profile
players who capture activity data and profiles.• Google has little of either.
© 2011 Altimeter Group
Social monitoring merges with Web analytics• HOT: Omniture, Coremetrics/IBM, Webtrends
Technology like Hadoop makes it easy for companies to tap “Big Data”• E.g. New York Times making its archives public• Twitter archived by Library of Congress• Facebook Cassandra, Amazon Dynamo, Google
BigTable Data visualization tools make it easy to
digest Balancing privacy and personalization
3) Big Data80
© 2011 Altimeter Group
Big Data evaluation81
User experience impact - Low• Most users won’t directly experience Big Data.
Business model impact – High• New businesses and initiatives can be started at
very low cost. Ecosystem value impact – Moderate
• Owners of Big Data repositories can assert control, demand payments for access.
© 2011 Altimeter Group
82
4) Game-ification
© 2011 Altimeter Group
TurboTax used “games” to encourage sharing and support
83
Social design can enter training, collaboration, support, hiring
© 2011 Altimeter Group
Gamification evaluation84
User experience impact – High• Experiences get richer, more engaging
Business model impact – Moderate• Work gets done faster, cheaper.• New organizational structures and cultures
emerge. Ecosystem value impact – Low
• Service providers will remain focused, boutique firms.
© 2011 Altimeter Group
85
5) Curation
© 2011 Altimeter Group
Curation evaluation86
User experience impact – Moderate• User authority established from better curation,
better content is organized well. Business model impact – Moderate
• Easier for businesses to create their content. Ecosystem value impact – Moderate
• Individuals challenge media and brands as authorities – and publishers that siphon off ad dollars.
© 2011 Altimeter Group
User Experience
Business Model
Value Networks
Likenomics Moderate Moderate Low
Social Search
Moderate Moderate Moderate
Big Data Low High Moderate
Gamification
High Moderate Low
Curation Moderate Moderate Moderate
Summary of disruptions87
© 2011 Altimeter Group
It’s about RELATIONSHIPS
© 2011 Altimeter Group
© 2011 Altimeter Group
Strategy• Learn
• Dialog
• Support
• Innovate
Lead Prepare
Agenda89
© 2011 Altimeter Group
OUT of CONTROL?
© 2011 Altimeter Group
© 2011 Altimeter Group
91
Photo by stanjourdan via Flickr
© 2011 Altimeter Group
92
Photo by Steve Rhodes via Flickr
© 2011 Altimeter Group
93
Photo by Steve Rhodes via Flickr
© 2011 Altimeter Group
Social media helps brands listen…94
© 2011 Altimeter Group
..and respond. But it’s not enough.95
© 2011 Altimeter Group
Open Leadership96
Having the confidence and humility to give up the need to be in control,while inspiring commitment from people to accomplish goals
© 2011 Altimeter Group
10 elements of openness97
• Explaining• Updating• Conversing• Open Mic• Crowdsourcing• Platforms
Information Sharing
• Centralized• Democratic• Consensus• Distributed
Decision Making
© 2011 Altimeter Group
Explaining strategic decisions98
Open book management
Managing leaks
© 2011 Altimeter Group
99
Updating with every day stuff
© 2011 Altimeter Group
Kohl’s has conversations on Facebook
100
© 2011 Altimeter Group
Open Mic: When people contribute101
© 2011 Altimeter Group
Crowdsourcing new Walkers flavour102
© 2011 Altimeter Group
Open platforms make it easy to partner and share
103
Open architecture Open data access
© 2011 Altimeter Group
104
Centralized Democratic
Consensus Distributed
Decision making models
© 2011 Altimeter Group
170 employees 100 modules with
“module owners” One person makes
the final decision in each module
Social technologies make distributed decision making possible
105
Manage complex tasks Organizing for speed
65,000 employees 16 Councils,
50 Boards make strategic decisions
Joint leadership of each group
© 2011 Altimeter Group
Determine how open you need to be with information to meet your goals
106
Openness audit available at http://bit.ly/opennessaudit
© 2011 Altimeter Group
Complete the Openness Audit107
© 2011 Altimeter Group
Traits of Open Leaders108
Authenticity Transparency
© 2011 Altimeter Group
Transparency as an imperative109
© 2011 Altimeter Group
How Best Buy became open and social
110
© 2011 Altimeter Group
Barry’s first post111
© 2011 Altimeter Group
The Premier Black Fiasco112
6.8 million emails sent instead of 1,000 test
© 2011 Altimeter Group
Developing Open Leaders
© 2010 Altimeter Group
© 2011 Altimeter Group
“You can imagine the Chatterati creating as much value as an SVP in the organization by sharing their institutional knowledge and expertise - and we should look at compensation structures with that in mind.”
- Marc Benioff, CEO of Salesforce.com
© 2010 Altimeter Group
© 2011 Altimeter Group
Strategy• Learn
• Dialog
• Support
• Innovate
Lead Prepare
Agenda115
© 2011 Altimeter Group
Strategy Process Stages
Discovery IdeationFormulatio
n & Alignment
Planning Roadmap
Roadmap• Three year plan• Six month milestones• Capabilities assessment and
preparedness• Metrics in place to measure progress
116
© 2011 Altimeter Group
Read the full report, Creative Commons
Open Research Report: Social Business Readiness117
Methodology
• 63 Interviews and briefings with ecosystem contributors
• Survey data from 144 social business programs
• Analysis of 50 social media crises
© 2011 Altimeter Group
Climb the Social Business Hierarchy of Needs118
Empowerment, Cross-Learning, Measurement
Asset Inventory, Best Practice Sharing,
Center of Excellence
Dedicated Team, Workflow, Crises Preparedness
Objectives, Policies, Education, Access
Holistic, Real-timePredictive
Foundation
Safety
Formation
Enablement
Enlightenment
© 2011 Altimeter Group
Highlight where you are strong, where you need to develop.
Don’t create strategies that you can’t execute.
Demonstrate impact of strategic work. Categories for readiness assessment
Assess your readiness to be social119
• Communication
• Mindset
• Roles
• Stakeholders
• Monitoring
• Reporting
• Customer Profile
• Market Analysis
• Processes
• Organizational Model
• Education
© 2011 Altimeter Group
Benchmarking Social Readiness (Before)
120
December 2009
© 2011 Altimeter Group
Benchmarking Social Readiness (After)
121
April 2010
© 2011 Altimeter Group
#1 Create a Culture of Sharing122
© 2011 Altimeter Group
Blogs establish thought leadership123
CEO Richard Edelman has been blogging consistently since September 2004.
© 2011 Altimeter Group
#2 Discipline is Needed to Succeed
Can you add value?
Evaluate the
purpose
Respond in kind & share
Thank the person
Unhappy Customer?
DedicatedComplainer
?
Comedian Want-to-
Be?
NegativePositive
Yes No
Do you want to
respond?
No Response
No
Yes
Take reasonable action to fix issue and let customer know action taken
Are the facts
correct?
Gently correct the facts
No
No
No
Yes
Are the facts
correct?
Does customer need/deserve
more info?
Yes
Explain what is being done to
correct the issue.
Yes
Is the problem
being fixed?
Yes
Let post stand and monitor.
No
Yes
NoYes
Yes
Assess the message
Adapted from US Air Force Comment Policy
© 2011 Altimeter Group
124
© 2011 Altimeter Group
Five ways companies organize around social media125
© 2011 Altimeter Group
#3 Ask the Right Questions about Value
“We tend to overvalue the things we
can measure, and undervalue the
things we cannot.”
- John Hayes, CMO of American
Express
© 2011 Altimeter Group
126
© 2011 Altimeter Group
A Framework For Social Analytics127
© 2011 Altimeter Group
+ Value of purchases- Cost of acquisition
____________________
= Customer lifetime value
The new lifetime value calculation
• Percent that refer• Size of their networks• Percent of referred
people who purchase• Value of purchases
• Percent that provide support
• Frequency and value of the support
+ Value of new customers from referrals
+ Value of support+ Value of ideas
+ Value of insights
Spreadsheets for all calculations available at open-leadership.com
© 2011 Altimeter Group
35% increase in LTV captured129
Year 1 Year 2 Year 3
Number of customers 10,000 5,000 3,500
Gross profit of purchases $400,000 $200,000 $140,000
Cost of acquisition $150,000 $25,000 $17,500
Net profit $250,000 $175,000 $122,500
Traditional LTV/customer $74.89
Value of referrals $30,000 $45,906 $45,287
Value of insights $10,000 $5,438 $4,080
Value of support $5,438 $8,156 $6,120
Value of ideas $2,000 $1,000 $1,000
Net profit and value $297,438 $235,500 $178,986
Revised LTV per customer $101.48
© 2011 Altimeter Group
Fans
Large network
Refers
Doesn’t refer
Small network
Refers
Doesn’t refer
Find more fans with
large networks
Encourage fans to make
more referrals
Make decisions with metrics130
© 2011 Altimeter Group
No relationships are perfect
Google’s mantra: “Fail fast, fail
smart”
#4 Prepare for Failure
© 2011 Altimeter Group
131
© 2011 Altimeter Group
Create
Sandbox
Covenants
© 2011 Altimeter Group
132
© 2011 Altimeter Group
Structure your risk-taking and failure systems to create resilience
133
1. Conduct pre- and post-mortems.• E.g. Johnson & Johnson after Motrin Moms.
2. Identify the top 5-10 worst case scenarios.• Develop mitigation and contingency plans.• E.g. Ford’s “lost” Fiesta.
3. Build in responsiveness.• E.g. Best Buy’s Black reward card.
4. Prepare yourself for the personal cost of failure.
© 2011 Altimeter Group
Audit the last few failures you and your organization experienced.• 25% - what happened.• 25% - what you learned.• 50% - what you will do next.
Keep a failure file. Identify risk-taking training needs. Build failure into your planning and
operating processes. Create support networks for the inevitable
failures.
Action plan to prepare for failure134
© 2011 Altimeter Group
It’s about RELATIONSHIPS
© 2011 Altimeter Group
© 2011 Altimeter Group
Charlene Li
charleneli.com/blog
Twitter: charleneli
For slides, send an email to
For more information & to buy the
book
visit open-leadership.com
© 2011 Altimeter Group